UAE residents expect to send more money overseas in the next 12 months, according to Western Union.
A study of 1,000 UAE residents and citizens shows that 76% of consumers who send money and 75% of consumers who receive money, respectively, expect to transfer and collect even more funds over the next year.
Supporting family members outside the UAE is the primary reason, with 60% citing it as the reason for international transfers.
UAE remittances survey
Saving money is a much less important concern, with just 11% of people surveyed giving this as a reason.
Jean Claude Farah, President of Middle East and Asia Pacific at Western Union, said: “To remit is often a very personal decision. Western Union data also supports that one of the most common reasons why consumers remit is to support loved ones and family.
“So, it is only natural that as the global economic climate challenges affordable ways of living, family support takes precedence over everything else as senders move money.”
The UAE is home to more than 200 nationalities and ranks among the top most talent competitive countries. Some of its more sizeable communities come from the world’s largest remittance-receiving economies.
As increased living expenses and global currency fluctuations create additional pressure on personal finances, 74% state that because of higher cost of living in the country they send to, they need to transfer more money.
71% of people surveyed send more money when the currency value falls in their receiving country.
Sending cash after payday regardless of wider economic circumstance (34%), or family needs back home (32%) are the two best-known drivers of money transfer flow and frequency.
However, Western Union’s study also shows a third factor: almost a quarter (21%) of consumers say they focus on sending money during festive occasions such as Ramadan, Christmas, New Year and Diwali, as well as other special occasions, such as birthdays, graduations and anniversaries.
37% of UAE consumers who receive money transfers also say frequency and amount is influenced most strongly by festive and other special occasions, ranking higher than family needs (27%) or the timing of their sender’s salary payment (18%).
As consumers consider how they would like to send and receive money in the future, they value choice above all.
Western Union’s study shows that 42% currently send money across borders exclusively through digital channels. However, as they look ahead, 46% want to be able to choose how they send their funds, whether in cash or digitally.
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